School Districts Being Fleeced in Interest Rate Swaps? (Bloomberg)

[JPZenger]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x335978

The above link describes how some PA. school districts are losing millions of tax dollars by agreeing to "interest rate swaps." They also generate millions in fees to politically connected firms.

This particular article does not highlight specific school districts. However, I know that the Bethlehem Area and Reading City School Districts have both been involved with interest rate swaps. It involves betting on variations in interest rates. Reading School District at one point had to pay in over one million dollars on a lost bet, although they had previously made profits on it.